Big crypto exchange Coinbase in talks to create insurance company

Big crypto exchange Coinbase in talks to create insurance company

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Teodor Stig-Matz

teodor.matz@trijo.co

Coinbase's competitors are choosing a different path when it comes to protecting themselves.

American Coinbase, which is one of the world’s biggest crypto exchanges, has recently had some problems with its page being down.

However, the giant exchange has been fairly protected from big hacker attacks and thefts, at least if you compare with some of its competitors.

May start company to protect themselves

Now Coinbase has taken a step along the way to protect itself if thefts or hacker attacks actually occur.

The exchange has begun negotiations with insurance giant Aon about setting up a so-called captive company. In short, this means that you start your own insurance company where you collect capital for the day when something unforeseen happens.

Coinbase’s competitors among the major crypto exchanges, such as American Kraken and Singapore-based Huobi, have chosen to go a different path when it comes to insurance. They save bitcoin in their own companies to have money if users’ cryptocurrencies would need to be replaced, Coindesk reports.

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